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Writer's pictureAvi Shaposhnik

Natural Gas Prices Falling - February 2024

According to the weekly EIA report, in the week ending February 14, 2024, the energy market witnessed notable fluctuations across various segments. Natural gas prices experienced a significant decline, with the Henry Hub spot price falling to $1.51/MMBtu, marking the lowest inflation-adjusted monthly average since at least January 2000. Similarly, the Henry Hub futures price decreased to $1.609/MMBtu, contributing to an overall downtrend in natural gas prices.


  • Natural gas prices experienced a significant decline, with the Henry Hub spot price falling to $1.51/MMBtu, marking the lowest inflation-adjusted monthly average since at least January 2000.

  • Regional spot prices demonstrated diverse movements, reflecting the impact of temperature fluctuations and demand-supply dynamics, with prices in the Northeast particularly volatile.

  • Supply and demand dynamics played a crucial role, with total U.S. consumption of natural gas decreasing slightly by 2.0%, while natural gas exports to Mexico and LNG terminals witnessed increases.

Regional spot prices demonstrated diverse movements, reflecting the impact of temperature fluctuations and demand-supply dynamics. Prices in the Northeast were particularly volatile, with the Algonquin Citygate experiencing a notable increase to $3.34/MMBtu, while prices in Texas and the Midwest also witnessed declines. Despite these fluctuations, prices across regions remained historically low for this time of year, indicating a prevailing trend of market softness.


Natural Gas
Natural Gas

Supply and demand dynamics played a crucial role in shaping market conditions. While total U.S. consumption of natural gas decreased slightly by 2.0%, driven by lower residential and commercial sector demand, natural gas exports to Mexico and LNG terminals witnessed increases. Additionally, LNG-related activities saw growth, with average natural gas deliveries to U.S. LNG export terminals increasing by 3.8% week over week, albeit with regional variances.


Storage trends indicated a net withdrawal of 49 Bcf, below the five-year average, contributing to an overall surplus compared to historical data. Meanwhile, the natural gas rig count witnessed a modest increase, reflecting ongoing activity in key producing regions such as the Haynesville, Marcellus, and Permian basins.


The insights from this weekly EIA report provide valuable information for businesses seeking to mitigate risks associated with market volatility. Hedgify's platform offers businesses the opportunity to safeguard against such fluctuations by providing seamless hedging solutions for commodities, energy costs, interest rates, and currency exchange rates. By leveraging data-driven insights and proactive risk management strategies, businesses can navigate uncertain market conditions with greater confidence and stability.


The information provided in this market insight is for general informational purposes and should not be considered as financial advice. It is not intended to offer any financial recommendations or endorsements. Any decisions made based on the content are the sole responsibility of the reader.

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